SBA & Small Business Market News You Need To Know [News]

April 13, 2015

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The SBA 504 program is performing at historical low delinquency and charge-off rates, according to an article on Coleman Report. Delinquency rates for SBA 504 declined from 5% in February 2010 to 1% recorded in July 2014. The charge-off rate for the SBA 504 program rose from late FY 2008 to early FY 2013, peaking at 4.4. It declined after that to 1.5% in July 2014.

Good news for fiscal hawks watching the SBA. The SBA 504 Loan Program will by a a self-sustaining program in FY 2016, meaning it will require no appropriation to keep it running. According to a statement released by NADCO, starting on October 1, 2015, program will be entirely self-funded with zero cost to taxpayers, as it had been for 16 years prior to the Great Recession. “The SBA 504 loan program has been helping entrepreneurs fulfill the American dream for over 30 years,” said Barbara A. Vohryzek, CEO and President of NADCO. “It was an integral economic development tool in reinvigorating the economy during the Great Recession, when banks were incapable of lending to small businesses. As a program that that can fill the credit market gap during an economic downturn, the SBA 504 is vital to small businesses that need capital during difficult economic times.”

Paww, the owner of two businesses that makes travel gear and products for dog owners, recently closed on a $5 million SBA 504 loan from TMC Financing CDC to purchase a 6,725-square-foot iconic creative space in the Upper Haight area of San Francisco. “San Francisco is an active market,” Chris Miksovsky, owner and chief executive human at both companies, said in a statement. “If you’re going to be here for a long time, which we plan to, there’s some argument for making the investment and owning the place you work.” Products made by both companies are sold by major retailers.

Lorena Chavez, senior business development officer at New Mexico-based Capital CDC wrote an article on the SBA 504 loan program for the Albuquerque Journal outlining some of the benefits of the program and its usefulness for small business owners. Chavez also took the opportunity to point out a great recent use of the program for a local business, Sorrel Sky Gallery. According to the article, the art gallery expanded its business from Colorado, opening its second location in Santa Fe and bringing jobs to the community. For the past 13 years, business owner, Shanan Campbell Wells build the gallery into a leader in the Four Corners art community.

Meet up with Liberty SBF to learn all about our SBA 504 Loan and pick up a copy of our white paper to see why this is the best program for small businesses. We will be at the following upcoming SBA-focused conferences:

SBA Lending Technical Conference, May 5-7, San Antonio, TX

NADCO Spring Summit, May 10-13, 2015, Washington DC

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• SBA announces second Accelerator Growth Fund competition

• Millenials ready for nontraditional financing methods

• The 5 C’s of and SBA loan

• Being a “mensch” in business

• Administrator Maria Contreras-Sweet talks SBA modernization


Click here for Liberty SBA 504 rates